STAND. COM. REP. NO. 991
RE: S.B. No. 1101
Honorable Ronald D. Kouchi
President of the Senate
Thirty-Second State Legislature
Regular Session of 2023
State of Hawaii
Your Committee on Ways and Means, to which was referred S.B. No. 1101 entitled:
"A BILL FOR AN ACT RELATING TO TAX INCREMENT BONDS,"
begs leave to report as follows:
The purpose and intent of this measure is to conform statutes relating to state debt limit statements to include tax increment bonds if a constitutional amendment authorizing the use of tax increment bonds, and excluding tax increment bonds from determination of the counties' funded debt, is ratified.
Your Committee received testimony in support of this measure from the Department of Transportation and Office of Planning and Sustainable Development.
Your Committee received written comments on this measure from the Department of the Attorney General and Tax Foundation of Hawaii.
Your Committee finds that tax increment financing allows a portion of property taxes in excess of a base assessed value to be dedicated to finance the costs of a project through the issuance of bonds.
Your Committee has amended this measure by:
(1) Deleting provisions of the bill amending state debt limit statement laws;
(2) Inserting provisions that amend Chapter 47C, Hawaii Revised Statutes, relating to the indebtedness of the counties, to allow counties to exclude tax increment bonds from the debt limit of the counties; and
(3) Making technical nonsubstantive amendments for purposes of clarity, consistency, and style.
As affirmed by the record of votes of the members of your Committee on Ways and Means that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 1101, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 1101, S.D. 1.
Respectfully submitted on behalf of the members of the Committee on Ways and Means,
DONOVAN M. DELA CRUZ, Chair